Annuity unit

Annuity Unit

Shares in an annuity. When one purchases an annuity, one purchases a fixed number of annuity units, which are set to represent the value of the portfolio in which the annuity invests. When one begins to receive payments from the annuity, this has the effect of selling annuity units so the annuitant may receive cash from them.

Annuity unit.

Annuity units are the shares you own in variable annuity subaccounts, also called annuity funds or separate account funds, during the period you're receiving income from the annuity.

The number of your annuity units is fixed at the time that you buy the income annuity contract, or when you annuitize your deferred variable annuity.

While the number of units does not change, the value of each unit fluctuates to reflect the performance of the underlying investments in the subaccount. That's why the income you receive from a variable annuity may differ from month to month.

5 billion Citigroup's Travelers Life & Annuity unit and nearly all of Citigroup's international insurance businesses in a transaction that would make it North America's largest individual life insurer based on sales.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.